UPI is governed by NPCI's operating guidelines under RBI's oversight of the Payment and Settlement Systems Act. Key points for retailers:
Standard transaction cap: ₹1,00,000 per day, up to 20 transactions per day per user.
Higher caps for select categories: up to ₹5,00,000/transaction and ₹10,00,000/day for insurance, capital markets, travel & government payments (effective Sept 2025).
UPI PIN authentication mandatory for every transaction — no exceptions.
Merchant KYC required for UPI acceptance, registered with a PSP bank.
This information is provided to help retailers understand the regulatory framework and is not exhaustive. Always refer to the latest RBI/NPCI circulars and your sponsor bank's onboarding terms before offering this service.